Title

Attorney General No.

SA87RF0040

Secretary of State No.

428

Description

BEER, WINE, AND DISTILLED SPIRIT TAXES: PUBLIC SAFETY AND EMERGENCY CARE. INITIATIVE STATUTE. Proposes to increase excise taxes for distilled spirits from $2.00 to $7.59 per gallon; beer from $1.24 to $5.58 per barrel; still wine from $0.01 to $0.06 per gallon; and for certain other alcoholic beverages. Distributes increased revenue to local governments for defined purposes, including public safety, emergency care and trauma centers, civil court improvement, alcohol and substance abuse education and victim restitution. Prohibits using increased revenue authorized to reduce current appropriation and expenditure levels. Adjusts future taxes for inflation. Increases state appropriation limit by increase in revenue. Make other changes. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: If adopted in November 1988, will produce approximately $90 million in state special fund revenues in 1988-89 (part-year) and $350 million in 1989-90 (first full-year). Revenues will probably decline gradually thereafter. Other effects on state revenues are essentially offsetting. Will result in increased sales tax revenues to cities, counties and transit districts of $3 million on a full-year basis. Unless authorized again by the voters, the increase in the appropriations limit will end January 1, 1992. This reduction could result in revenues being returned to the public or reductions in other state programs.